Category: Blog

Top 10 Reasons to Use GPS Tracking Technology

Posted on | by Courtney redwell
    • Save Fuel

Fuel gets wasted from poor driving behavior (like speeding), unnecessary idling and unnecessary miles driven that a GPS fleet tracking system can help identify. Our customers have reported anywhere from 12-30% savings on fuel after implementing our system.

    • Increase Productivity

Optimize driving routes; find the shortest routes with the least amount of traffic to get to destinations faster. Get to your customers on time and send the closest drivers to the closest call.

    • Improve Vehicle Maintenance

Without a fleet management system vehicles are usually either serviced at regular intervals or service is forgotten altogether. This can cause a few problems, either the vehicles are getting serviced when no maintenance is actually needed or vehicles are overdue on their maintenance. With our fleet management system you can set up alerts for maintenance and the system will alert you of any engine faults. You will no longer need to pay high priced mechanics to find out what is wrong, our software can tell you.

    • Reduce Labor Costs

Time is money and with our fleet management system get accurate records of driver hours. Eliminating manual time sheets will please your drivers and your administrative staff.

    • Increase Driver Safety

Eliminate speeding, rapid acceleration and harsh braking. Fleet managers will be able to access important data about driver behavior and can identify pain areas to discuss with their drivers. Our in-vehicle driver training ‘beeps’ will also alert drivers immediately of any poor behavior allowing them to correct the negative actions themselves.

    • Prevent Unauthorized Vehicle Use

Unauthorized and after-hour use of the company vehicles can be easily identified and controlled with real-time data and alerts from our fleet management system.

    • Plan Routes Efficiently

GPS tracking technology allows fleet dispatchers to use real-time location for time-sensitive dispatching. It enables dispatchers to identify any delivery/service route overlaps and difficult traffic areas to avoid.

    • Reduce Insurance Costs and Liability

Many insurance companies offer discounts to businesses taking advantage of GPS tracking technology. Also, fleet management systems can reduce liability from worker’s compensation costs and accident claims. GoFleet has a partnership with Mutual Liberty and can offer between a 10-40% discount for fleets of 20 or more.

    • Optimize Customer Service

Real time tracking makes serving your customers easier. Know which driver to send, where they are and when they will arrive to the destination. The GPS tracking data can be used to verify driver deliveries and the amount of time spent at each location. The system also removes all customer vs. driver disputes by providing the real facts.

GPS fleet tracking does much more than simply ‘tracking’. Of course this feature is great but with all the advanced reporting technology, driver coaching, and alerts that come along with it your company will realize a return on investment and overall business optimization in no time.

Fleet Management With Advanced Exception Reporting Technology

Posted on | by Courtney redwell

Advanced Exception and Risk Management Reports Assist in Fleet Management

Rule Creation

A simple and effective way to manage the weak areas of a fleet is reporting by exception. Management can easily choose and set specific rules and standards by using Geotab’s Rules engine. Driver training programs that make use of the in-vehicle beeping function, which is triggered when a rule is broken, has proven to be one of the most effective ways to manage and improve the on-road behavior of your drivers.

fleet management speeding seatbelt exceptions

The most common exceptions include:

  • Idling over your threshold
  • Speeding over the posted limit
  • Seatbelt
  • Aggressive driving

When these rules are broken, they can be communicated in a few different ways:

  • Real-time email alert
  • Urgent pop-up on screen in real-time
  • In-vehicle beep can be set, this is a real-time driver behavior management tool used to correct poor driver behavior
  • Possibly the most used: when rules are broken they automatically populate into the Risk Management Report and Exceptions Report. Broken rules can also show on the map for a quick view, and exact location of an incident.

What is the Different Between Risk Management and Exception Reports?

One of the biggest differences is that the Exceptions report shows the location of where each rule was broken. This data is usually most important for organizations because it encompasses all the weak spots and can be communicated to management easily when broken. It optimizes the “no news is good news” saying: management only needs to be notified if a rule has been broken.

On the other hand, the Risk Management report shows how many rules were broken and the total miles driven for the specific time frame chosen. This is also a very important metric, when you take a look over the entire organization you can see how many rules were broken over a standard amount of miles. For example how many rules were broken per 100 miles driven? This allows all drivers to be placed on an even field so the organization can enforce fair practices. Consider this: A driver that breaks 10 rules and drives 50 miles is very different than a driver that breaks 10 rules and drives 500 miles.

Want to improve fleet management and/or learn more about GPS fleet tracking and how it can optimize your business? Contact us!

Original Article From Geotab:
http://stagingms/fleet-management-exception-reporting-technology/

5 Reasons to Adopt Telematics Today

Posted on | by Courtney redwell

 

Telematics Benefits

 

The potential of telematics, also known as GPS fleet tracking, is huge. Think of it as a mobile phone for vehicles, it can tell you where it is and what it’s doing whenever the vehicle is running.

  • You Can’t Manage What You Can’t Measure. With telematics you can determine a vehicles mileage, performance, location and speed and compare it to other similar vehicles or vehicles in your fleet to gauge performance. For fleet managers to properly understand and enhance their metrics, telematics is key.
  • Competitive Edge. From limousine services to national delivery companies, if your business uses vehicles for day-to-day operations it can benefit from gps vehicle tracking. Telematics allows businesses to improve response time, plan routes to spend less time driving, and of course lower fuel and maintenance costs. Gain competitive edge over the competition with GPS fleet tracking.
  • Cheaper Insurance. GoFleet has developed a partnership with Mutual Liberty and can offer a discount between 10-40% for fleets of 20 or more (US based customers). There are also many other insurance companies that will often offer discounts if you provide them with a snapshot of your drivers information. This way they are in a better position to offer competitive quotes for good driver behavior.
  • Improved Dispatch and Customer Service. Telematics allows you to improve efficiency and response time. Make your customers happy and keep them coming back to you for future services. Enhance and improve your sales, lower costs and increase profits.
  • Maintenance Management. With the help of telematics never miss another oil change or tire rotation again. You can set up maintenance reminders and alerts to be notified when maintenance needs to be done on each vehicle. Since the devices plug right into the vehicles computer (ECM), you will also be able to see the same messages the mechanic would see and get notified of any engine faults. You can fix any issues before they become something serious.

 

For more information on GPS tracking and telematics, contact us!

 

GPS Truck Tracking Software Improves Driver Safety & Compliance

Posted on | by Courtney redwell

GPS Truck Tracking Software Improves Compliance and Driver Safety

A poor safety rating can be crippling to a business; fortunately GPS truck tracking software can help. Orkin, the 20th largest fleet in the world knows this all too well. The sustainability of Orkin’s entire business was threatened by a poor safety rating. At one point 7% of Orkin’s entire revenue was going towards insurance and claims. A strict culture of safe driving was introduced through a comprehensive fleet management program. Since implementing this program into their fleet 11 years ago, Orkin has saved as much as $40 million per year or $6000+/vehicle.

The margin for error within driver safety and compliance becomes narrower every year. Any tickets, accidents or claims impacts the entire company and forces harsher penalties, liability, and ultimately higher overall operating costs.

ACTION STEPS:

  1. Post a weekly driver scorecard report for drivers and management. This report measures driver risk by driver. Risky driving habits such as speeding, seat-belt, harsh-braking and backing-up when leaving are measured.
  2. Allow drivers to self-evaluate and make efforts to improve poor driving habits through the GPS truck tracking software.
  3. Define penalties around unsafe driving which puts your company at risk. Communicate that unsafe driving will not be tolerated.
  4. Develop baseline measurements of driving habits through a driver scorecard. Evaluate current liability and insurance costs. Set goals for improvement based on the measurements and measure against these goals at 3-6-12 month intervals.
  5. Using the GPS truck tracking software, implement driver training for high risk drivers. A study by SAFED showed that the average driver reduces fuel consumption by over 10% following fuel efficient driver training. Additionally driver training reduces risk and claims by as much as 50%.

INSURANCE DISCOUNT PARTNERSHIP

Call your insurance company. Evaluate potential insurance savings with your insurance company based on reduced liability.

GoFleet has developed an insurance discount partnership with Mutual Liberty. This insurance discount can range from a 10-40% discount on insurance premiums for fleets greater than 20 vehicles (US Based Customers). Qualify for insurance discounts by visiting our insurance partner: On Board Advisor.

COMPLIANCE WITH HOS & DVIR

New CSA/DOT compliance requirements mandate Hours of Service (HOS / Driver Log) and Driver Vehicle Inspection Reports (DVIR) for specific types of commercial fleets (typically applying to heavy duty logistics fleets). These mandates help ensure drivers are not driving fatigued and that vehicles safe to operate on the road. Through GPS truck tracking software, GoFleet offers HOS & DVIR compliance tools that are Android / Garmin / Mobile based. Do you have HOS / DVIR requirements? Want to learn more about GPS fleet tracking solutions? Email: [email protected]

Myths About GPS Fleet Tracking Systems

Posted on | by Courtney redwell

GPS Fleet Tracking Systems: Common Myths

GPS Tracking often gets a bad name. Many employees may feel uncomfortable with GPS fleet tracking systems being installed on their vehicle. Employers may feel it is simply too expensive and they will not have the time to make it beneficial. These are just a few of the myths that will be covered in this article. Fleet tracking is implemented to help everyone. Not just the employer, the employees, and business as a whole.

1. We Trust Our Employees Therefore Have No Need For GPS Fleet Tracking.

GPS fleet tracking systems are not intended to monitor your employees’ every little move. It is geared to reduce operating costs and inefficiencies in the field. GPS tracking systems have been proven to reduce maintenance and fuel costs, optimize dispatching and routing, increase response time and accuracy to customers, and provide safety and security for drivers.

  • In general you know you can trust your employees, but without GPS tracking how can you be sure?
  • Do you know how much your vehicles are being used for personal use?
  • If company vehicles are being used for personal use then aren’t employees using your gas and creating wear on your vehicles? What is this costing your company?
  • Are your employees doing work on the side, with your company’s vehicle?
  • Is your company being put at risk by employees doing work on the side in your vehicle?
  • Without a GPS tracking system, how much is this potentially costing your company in wasted fuel and wasted time?

2. GPS Fleet Tracking Systems Are Complicated to Use And Install.

As long as the tracking system you are interested in purchasing is plug and play, it’s easy to install. There is no messy wiring or complicated installation. When it comes to using the system, make sure your vendor is willing to work with you to learn the ins and outs of the software. This includes:

  • Get you started and teach you the basics of the system
  • Show you how to interpret data and apply it to save on fuel and operational costs
  • Provide any support you need throughout the ENTIRE time the service is provided to you NOT just when the system is first implemented
  • Have available technical and sales support to cover any issues you may be having

3. Our Drivers Will Quit if we Install GPS Fleet Tracking.

Our personal experience with a vast customer base proves this theory untrue. You would be surprised at how much some employees depend on GPS tracking for time card verification, routing information, roadside assistance and verification between any customer and driver disputes. GPS fleet tracking systems often eliminate annoying and time-consuming paper work for drivers and provide extra security.

GPS Tracking aims to benefit the company as a whole, it is not used to get drivers in trouble. It can help:

  • Verify and possibly reward good behavior
  • Proof of delivery and length of service calls. For example: verify employees word when held against customer word
  • Increase driver safety
  • Provide proof of meeting performance goals

4. GPS Fleet Tracking Systems Are Not Affordable

Of course cost is an understandable concern to have. GPS tracking systems normally require a monthly fee and an investment in hardware for each vehicle. Even though these costs may not seem like a necessary expense the system will not only preform necessary tracking of your vehicles but will also identify bad practices that cost companies up to thousands of dollars every month. These expenses include: Excess idling, poor driving habits (reckless driving), excess overtime, vehicle maintenance, inefficient routing, side trips and more. The costs of these monthly reoccurring inefficiencies quite often exceed the monthly investment of a GPS tracking system. Return on investment happens as early as the first couple months for some companies.

  • Many companies can’t afford NOT to implement a GPS tracking system.
  • ROI usually happens within one to three months of investment
  • Only the first month payment is considered capital outlay. The system then becomes an operating expense rather than a capital cost and often businesses can receive a tax deduction.
  • Without implementing the system, how much is wasted time and fuel costing your company?

5. All GPS Systems Are The Same.

Many business owners may think that GPS tracking alone (knowing where their vehicles are at all times) is good enough. If you are only utilizing GPS fleet tracking systems to track your vehicles you are missing out on all the other great features. The business optimizing potential of the system is huge and goes well beyond just simple tracking.

Many GPS tracking providers will only set up the basic tracking capabilities and refuse to make the commitment in helping customers to use this technology to its full potential. When choosing GPS fleet tracking for your business make sure your future provider has an interest in learning about your business, the goals you hope to achieve, and the money you want to save through the system.

There is some truth to the myth of all GPS fleet tracking systems being the same; many providers may sell a similar technology but the true value comes in the relationship you build with that provider over time. A Fleet Coordinator states:

“Not only did I find that we were overpaying for an antiquated technology from our previous provider, but also that we were way behind in ease of installation, functionality, and reporting options. It wasn’t long before we saw what fleet tracking could really do for us thanks to GoFleet. The ease of plug & play technology, custom reporting that goes beyond “the norm”, and perhaps my favorite part, talking to the same person every time I call!”

6. GPS Fleet Tracking Systems Are Not a Necessity

Fleet managers and business owners often think they can track their drivers well enough through cell phone communication.

A cell phone may be a valuable tool but it cannot provide anywhere near the amount of useful information a tracking system can such as: engine status, real-time vehicle location, history of stops, stop times, and many other valuable metrics including fuel consumption, mileage and speeding.

If you think cell phones can track your drivers well enough, ask yourself these questions:

  • Do some drivers give you the answers you want to hear, instead of their actual location?
  • What about those drivers who don’t even know where they are?
  • How much of your own time is wasted asking your drivers for their location?
  • How much is your company wasting on time and fuel?

7. We Are All Too Busy To Use GPS Fleet Tracking Systems

If you relate to this statement then it is a warning sign your business is no longer under control. Instead of you running your business, it is now running you.

Are you currently paying supervisors to watch over the workers? Can you afford to pay employees to watch over other employees? GPS will automatically monitor employees and can send you up to date alerts automatically. GPS fleet tracking systems are easy to get set up and running, right away.

For more information on GPS tracking, pricing, or to sign up for a free 30 day trial, please email [email protected].

How Vehicle Tracking Software Helps With Reputation Management

Posted on | by Courtney redwell

Vehicle Tracking Software & Reputation Management

Effectively manage your company’s reputation with vehicle tracking software to stay on top of your competition.

We live in a reputation based economy. According to the Reputation Institute, who you are matters more than what you produce. In a reputation based society consumers are more likely to purchase a product or service from a company with a good reputation; ultimately making a decision based on their perception of a company instead of what the company provides.

For example, if you are interested in getting your driveway repaved, and a friend tells you about how disrespectful the company that did her driveway was, it is more than likely you will not hire that company. Even if they did an impeccable job at paving her driveway, you would not be inclined to hire a disrespectful company no matter how well they preformed their job.

This can also apply when it comes to driving habits. If your company vehicles are being operated by poor drivers who do not follow the rules of the road, this could seriously effect your company’s reputation. When you are driving down the highway and someone is swerving in and out of lanes, or speeding past other cars it is likely you’ll notice. Now picture that car with your company logo plastered on the side and what it could potentially be doing to your company’s reputation. Vehicle tracking software can help you ensure your employees actions while on the road have a positive impact on your company to either improve or keep a good reputation.

A company’s reputation is difficult for competitors to imitate. Also, it is an ongoing process. You need to uphold your good reputation by always paying attention to how it can further be improved to help you stay on top. Research has shown a strong relationship between a corporation’s perceived reputation and a customer’s purchase intent. If someone is on the fence about a purchase they will often consult people they know. Their family and friends can be the deciding factor and without a good business reputation an on the fence decision is often turned into no sale.

Vehicle tracking software can help improve and keep an excellent reputation on the road. Your reputation can either help drive your sales up or bring them down, it’s up to you. Contact GoFleet today to learn more about our vehicle tracking software and the many benefits it can bring to your business.

Fleet Tracking Software Improves Maintenance, Reduces Breakdowns

Posted on | by Courtney redwell

Reduce Breakdowns and Improve Maintenance Management with Fleet Tracking Software

Regular breakdown maintenance reduces costs in the long run by guarding against preventable damage through wear and tear. Vehicles that are regularly serviced are also more fuel efficient. Fleet Tracking Software takes the guess work out of maintenance ensuring all maintenance is kept up to date and done on time.

However, it is vital to ensure you have control of your maintenance costs and our GPS fleet tracking software helps you be in control. If your fleet is made up of new vehicles, put a clear process in place to claim back costs through manufacturer warranties where this is applicable.

An educational program for drivers highlighting the need to make repairs early can also generate cost savings. It is more cost effective to repair a small chip in a windscreen or a small scratch on bodywork than it is to replace the entire windscreen or repair a scratch that has been allowed to become rusty. This also protects against end of life recharges from your leasing company as well.

Fleet Tracking Software Maintenance Management

Action Steps:

Itemize a priority list of maintenance reminders for your fleet and date/odometer of the last maintenance event for each vehicle.

Major Reminders Include:

  • Oil Changes & Filters
  • Tire Services
  • Winterization
  • Surface/Electrical/Hose Inspections
  • License & Certification Renewals

Setup these reminders for vehicles with our fleet tracking software, MyGeotab: Video Tutorial to Setup Fleet Maintenance Reminders.

Setup Scheduled Maintenance Reminders / Vehicle Diagnostic Reports for maintenance persons (or drivers if they are responsible for maintaining their vehicles) on a weekly/monthly basis.

Have reminders updated in MyGeotab as service and reminders are completed.

ENHANCED MAINTENANCE ADD-ON: Running a large fleet with maintenance staff? Need to get organized? Get an enhanced integrated maintenance management system with GoFleet using FIIX CMMS. This add-on allows you to complete work orders, manage parts and inventory and also integrates with odometer/engine hour data directly from MyGeotab. Email [email protected] for more information.

Fleet Tracking System: Easy Steps To Trim Fuel Costs

Posted on | by Courtney redwell

FLEET TRACKING SYSTEM HELPS CUT FUEL COSTS

Trimming the fat off fuel costs doesn’t have to be difficult. It starts with implementing a fleet tracking system, then developing and managing fuel efficiency key performance indicators (KPIs). These KPIs include:

Idling Cost & Idling Percentage = KPI for Fuel Use Efficiency

Why:

Our fleet tracking system shows an idling percentage which represents the overall idling time over total driving time. A high idling percentage leads to poor fuel efficiency and significantly higher overall fuel costs. The lower your idling percentage, the higher the fuel savings.

fleet tracking system cuts idling

Action Steps:

  1. Establish an initial baseline of idling cost and percentage by driver.
  2. Target weekly measurable improvements in idling percentage and idling cost.
  3. Progressively reduce the idling time for the Audible Driver Coaching Beep (from 10 minutes, to 5 minutes, to 3 minutes).
  4. Feel free to move to a monthly reporting/review format as you see measurable improvements with idling habits.
  5. Share weekly results and reports with drivers and setup quarterly/annual rewards for lowest idling time.

Total Incidents by Driver = KPI for Fuel Efficiency against Aggressive Driving Habits

Why:

Driving habits such as speeding, harsh braking and rapid acceleration have a significant impact on fuel economy. GPS fleet tracking systems can help catch these bad driving habits and correct them.

Action Steps:

  1. Establish an initial baseline of aggressive driving habits by drivers.
  2. Educate company drivers on other fuel efficient driving habits – such as optimal engine speeds, driving speeds, warm up times, acceleration and deceleration techniques.
  3. Target weekly measurable improvements in the Driver Scorecard Report.
  4. Feel free to move to a monthly reporting/review format as you see measurable improvements with driving habits.
  5. Share weekly results and reports with drivers and setup quarterly/annual rewards for safe and efficient driving.

Implement a Fuel Card System and Fuel Card Integration

Fuel cards can also be used to detect fraud, and monitor expenditure (fuel/distance) and identify those drivers/vehicles who appear to be using more fuel than would be expected.

The administrative burdens of managing a fuel card program can be significantly reduced by integrating a new/existing fuel card program with GoFleet’s fuel card integration system. GoFleet’s GPS fleet tracking system fuel integration monitors and measures actual fuel consumption and fuel ups from the vehicle computer, and against GPS data.

Action Steps:

Request a custom fuel-up report from GoFleet, which measures the date, odometer and fuel up amount. (You will be required to input the actual fuel tank capacities for each vehicle to get the most accurate measurements).

fleet tracking system fuel card integration

ENHANCED FUEL CARD ADD-ON: Request fuel card integration with an existing Fuel Card. Comparing actual fuel data with fuel card reports allow a fleet manager to easily identify inconsistencies and potential fuel theft.

To learn more about how GoFleet’s fleet tracking system can help lower the fuel costs of your fleet, contact us!

Fleet management: Fuel Usage, Faults, Diagnostics, Maintenance Reminders

FMCSA Proposed Mandate of Electronic Logging Devices

Posted on | by Victoria Gole

Electronic Logging Devices Proposed to Improved Efficiency and Safety

On March 13th, The Federal Motor Carrier Safety Administration (FMCSA) issued a revised proposal to mandate that electronic logging devices be installed in interstate commercial buses and trucks.

The requirement would reduce paperwork burdens on carriers, help enforce hours-of-service rules, and ensure that drivers are not harassed, FMCSA said.

The new proposal supplements FMCSA’s February 2011 proposal. FMCSA stopped work on that requirement in 2012 after a federal court ruled that a previous regulation mandating the devices for some carriers did not properly prevent the ELDs from being used to harass drivers.

“Today’s proposal will improve safety while helping businesses by cutting unnecessary paperwork” Transportation Secretary Anthony Foxx said in a statement. “By leveraging innovative technology with electronic logging devices, we have the opportunity to save lives and boost efficiency for both motor carriers and safety inspectors.”

The proposal addresses new technical specifications for ELDs, clarifies hours-of-service supporting document requirements, mandates ELDs for drivers currently using record of duty status, and outlines technical and procedural provisions aimed at ensuring ELDs are not used to harass vehicle operators.

“By implementing electronic logging devices, we will advance our mission to increase safety and prevent fatigued drivers from getting behind the wheel,” FMCSA Administrator, Anne Ferro said. “With broad support from safety advocates, carriers and members of Congress, we are committed to achieving this important step in the commercial bus and truck industries.”

In an effort to lessen motor carriers’ and drivers’ fears, FMCSA said in its statement that the rule protects privacy because electronic logs would only be available to law enforcement or FMCSA during compliance reviews, roadside inspections, and post-crash investigations.

“American Trucking Association supports FMCSA’s efforts to mandate electronic logging devices in commercial vehicles as a way to improve safety and compliance in the trucking industry and to level the playing field with thousands for fleets that have already moved to this technology voluntarily,” American Trucking Association President Bill Graves said.

The rule would come with a new prohibition on carriers harassing drivers. This could carry up to an $11,000 fine. Carriers must allow drivers access to their logs, and the logging devices must be able to be muted when drivers are asleep.

Ultimately, The proposed rule will reduce hours-of-service violations by making it much harder for drivers to misrepresent their time on logbooks and avoid detection by law enforcement personnel and FMCSA. Analysis shows it will also help reduce crashes by fatigued drivers and approximately prevent 20 fatalities and 434 injuries each year for an annual safety benefit of $394.8 million.

The proposal will soon be published by FMCSA in the Federal Register, starting a 60-day period comment period for the public. The comments will then be considered by the agency before making the rule final.

As proposed, after FMCSA makes it final the mandate would take two years to take effect.

More information on Electronic Logging Devices and the Supplemental Notice of Proposed Rulemaking, visit: www.FMCSA.org/rules-regulations/

Sources:
FMCSA: DOT Proposes Use of Electronic Logbooks to Improve Efficiency & Safety
Transport Topics: FMCSA Proposes ELD Mandate for Nearly All Trucks

How Telematics & EOBRs Are Changing Long-Haul Trucking

Posted on | by Courtney redwell

The Trucking Industry is Being Transformed With Telematics & EOBRs

On a long stretch of highway, a semi-trailer send a message to a trucking company stating the truck’s refrigeration unit is warming up. Before the product being transported has a chance to be affected from the temperature, the company notifies the driver of where to get it fixed, saving the contents in the truck from spoiling.

Back at the main company headquarters, trucking experts are connecting with drivers on the road who are attempting to improve fuel economy. In a number of phone conversations, they work together to improve driving habits or diagnose equipment problems, allowing drivers to make fewer stops to fuel up.

These are just two examples of how trucking and big data have intersected for early adopters like C.R. England Inc., one of the largest for-hire motor carriers in the country.

Telematics and electronic on-board recorders (EOBRs) are transforming how large motor carriers transport goods. Using intelligent systems that collect data and communicate in real-time to ensure that food and beverages arrive unspoiled, drivers are more awake and highways are a safer place for everyone. Big data has brought the potential to protect, and possibly even expand, the trucking industry’s profit margins. Experts believe it won’t be long before multi-purpose monitoring units are installed in every semi-trailer across the America.

Toward “Total Cost of Ownership”

C.R. England has installed in-cab telematics system in every single one of its company and independent contractor vehicles. That’s 4,500 revenue-producing trucks, plus training and auxiliary vehicles. The devices track fuel efficiency factors, driving hours, location and critical events like harsh braking and the activation of trailers’ roll stability controls. This information is then communicated in real time to the company, by cell tower or satellite, and used to make future decisions en route.

“If you’re adopting EOBR and not using that now-visible log data in your planning and swap decision making, then you’re not taking the most advantage possible of that data,” states senior director of operations technology, Ron Hall, at C.R. England. In 2008, the company began implementing EOBR at the encouragement of Chad England, now CEO, who was the senior executive for recruiting and safety at the time of implementation.

Since then, the data collected by telematics units and EOBRs have been used to make sizable purchase decisions. “When we award business to a particular tractor manufacturer, we’ll actually award the business based on total cost of ownership, not just the purchase price, and fuel consumption is a major factor in that total cost of ownership model that we make our decisions off of,” says Hall.

Number crunching has paid off. Hall states the devices have helped the company reduce deadheading (trailers traveling empty between unloading & reloading) from 8% of miles traveled to below 7%. He also estimates fuel efficiency improvements at a tenth of a mile per gallon per year for the last three years.

Although big trucking companies have readily adopted big data strategies in their business models, smaller carriers have been less eager.

“Based on our research, the small guys typically postpone a major technology investment three to five years,” says Dan Murray, VP of research for the non-profit American Transportation Research Institute. He adds that after bigger carriers have outfitted their fleets and tested early versions of products, prices usually drop and models are normally easier to implement, given input from early adopters.

“The question is, can the small guys survive long enough to benefit from the technology? The trucking industry’s average profit margin is about 3.6 cents on the dollar,” says Murray. “So we only invest in technology that has an almost immediate ROI, and it has to have a pretty fast payback or break-even point, within 12 to 18 months.”

Lying on log books

The Federal Motor Carrier Safety Administration (FMCSA) will soon require all carriers to install some type of electronic on-board monitoring device in vehicles to track how many hours a driver has been on the road and vehicle status. Supporters of the new rules, such as president of the Arkansas Trucking Association Lane Kidd, say that electronic devices will improve trucking safety.

“Three million truck drivers today still use a paper log book, which is the same system we have had in the trucking industry since 1938. And the worst kept secret is that drivers lie on their log books,” says Kidd. He suspects that electronic on-board recorders will, first and foremost, improve highway safety by preventing drivers from being too tired. “It gives the company a better view of what’s actually happening on the highway.”

C.R. England’s compliance manager Kevin Carlisle says that for as many carriers that have implemented EOBR systems, “there are many, many more companies that are not using electronic logs.” And they’re missing out on a key advantage of adopting electronic logs: Carlisle says annual inspections found errors in 55% to 67% of paper logs, which can result in detention of trailers or fines. With the new electronic logs, he says, inspectors occasionally find no errors in their drivers’ logs during an inspection period.

The future of telematics and big data in trucking, says Murray, lies in cross-referencing data on traffic delays, weather, and parking availability with real-time driver data to deliver information to the driver as fast as possible. For example, a driver’s device might tell him or her if weather ahead will cause a delivery delay that would extend past the maximum driving hours for the trip and then guide the driver to the nearest parking area.

“I would say that within a couple of years that level of sophistication will be out in the truck—for sure within two to three years,” Murray says.

More information on when to expect the electronic log mandate to be in effect.

Source: Forbes, Original Article: How Big Data Is Changing Long-Haul Trucking